The UAE has recently announced its new 2024-27 National Strategy for Anti-Money Laundering, Countering the Financing of Terrorism, and Proliferation Financing (AML/CFT/CPF). This strategy, which consists of 11 strategic goals, aims to implement legislative and regulatory reforms to prevent the impact of illegal activities on society. The strategy was developed based on the latest National Risk Assessment using the World Bank Group’s methodology, and private sector engagement was crucial in the final stage consultations.
The national strategy focuses on key pillars of risk-based compliance, effectiveness, and sustainability. It includes enhancing national and international coordination, ensuring effective supervision of AML, CFT, and CFP obligations in the private sector, strengthening detection and disruption of illicit financial activities, optimizing human and technical resources, improving data collection and analysis, and continuously updating the legal and regulatory framework to adapt to evolving risks. The strategy also addresses risks posed by virtual assets and cybercrime.
The strategic approach outlined in the national strategy includes improving sector-specific risk understanding, enhancing international cooperation, strengthening oversight of financial institutions, and designated non-financial businesses and professions, improving transparency of beneficial ownership information, utilizing financial data for effective investigations and asset recovery, maintaining frameworks to combat terrorism financing, and updating legal and regulatory frameworks. It also emphasizes coordination between public and private sectors, developing centralized data systems for monitoring, and ensuring resources and training for various entities.
The General Secretariat of the National Committee will oversee the implementation of the new strategy, ensuring alignment with the UAE’s objectives and international standards. Regular progress reports will be submitted to the Higher Committee for Supervising the National Strategy to Combat Money Laundering and Terrorism Financing. Sheikh Abdullah bin Zayed Al Nahyan, Deputy Prime Minister, Minister of Foreign Affairs, and Chairman of the Higher Committee, commended the efforts of the National Committee and emphasized the UAE’s commitment to upholding international standards in combating financial crimes.
The proactive approach taken by the UAE not only safeguards the integrity of the global financial system but also strengthens its position as a leading international financial center and trade hub. The UAE aims to stay ahead of emerging threats through continuous enhancement of its AML/CFT framework to ensure the safety, resilience, and efficiency of its financial system. Recent initiatives, such as the Federal Decree issued in August, demonstrate the UAE’s dedication to protecting the local financial ecosystem and implementing groundbreaking standards to counter crimes that affect the economy, thus reinforcing its status as a financial center and international trade hub.
In conclusion, the UAE’s new national strategy for AML/CFT/CPF reflects its commitment to combating financial crimes, upholding international standards, and protecting its financial system. The strategy focuses on key pillars of compliance, effectiveness, and sustainability, with an emphasis on coordination, oversight, and data utilization. The UAE’s proactive approach and continuous enhancement of its AML/CFT framework highlight its dedication to safeguarding the financial ecosystem and maintaining its position as a global financial center.
